Centrus Energy (NYSE: LEU) stock has surged nearly fourfold in the past year due to increased demand for nuclear power, new partnerships, and expansion plans. The company, licensed to sell low-enriched uranium (LEU) and produce high-assay low-enriched uranium (HALEU) for advanced reactors, is poised for further growth.

While Centrus’ revenue declined between 2014 and 2018, it rebounded in the following years, growing at a CAGR of 15% to $442 million by 2024. Analysts expect continued growth as demand for nuclear energy rises, especially with the production of HALEU for the U.S. government.

The global demand for enriched uranium is on the rise, driving uranium spot prices back up to $81.55 per pound. Analysts predict further increases, with some expecting prices to reach $100 in 2026 and $140 in 2027. This trend bodes well for companies like Centrus operating in the nuclear energy market.

As the nuclear energy market expands and demand for HALEU fuel grows, Centrus is expected to see revenue growth of 7% annually to reach $538 million by 2027. While its growth potential is promising, investors should be cautious of its current premium valuation, which may limit its future upside until new catalysts emerge.

Read more at Yahoo Finance: Where Will Centrus Energy (LEU) Stock Be in 1 Year?